Form 1095A

[rarney13679491]

I bought health insurance through the Marketplace and received a form 1095-A.  Because of the American Rescue Plan the premium tax credits I received from June-December 2021 were much higher than I was receiving in the beginning of the year and are more than my income would normally allow.  When I put the premium tax credits into TurboTax it tells me that I overestimated my income and I have to pay back the overage.  This doesn't seem right, has anyone else experienced this?

[HelenC12]

TurboTax is correct. If you use more of your premium tax credit (PTC) than your final taxable income allows, you'll need to repay the difference when filing your Form 1040 at tax time. If your advance PTC was too high based on your income, the Marketplace indicates you should have informed them. 

• Changes in income and family size may affect your eligibility, so report these to the Marketplace to ensure you receive the appropriate tax credit. The premium tax credit program uses the federal poverty line to determine the income ranges that qualify you for the credit.

[rarney13679491]

I always inform the Marketplace when my life events change.  I was receiving the correct amount of tax credits for my income prior to the institution of the American Rescue Plan.  It doesn't seem fair that I should receive additional aid and then have to pay it back come back time.

[MinhT1]

Did you receive unemployment benefits in 2021? If you do, ATC repayment may be reduced.

Please revisit your form 1095-A and make sure all numbers entered are correct.

Although you may have notified the Marketplace of all life events, you will have to repay some of your advance premium if yiur actual income is higher than your estimated income when you enrolled.